Escaping the Build Trap

Chapter 1. The Value Exchange System

Companies end up in the build trap when they misunderstand value. Instead of associating value with the outcomes they want to create for their businesses and customers, they measure value by the number of things they produce. Marquetly was a clear example of this when the leaders celebrated the 10 features the company shipped in a single month, but none of those features achieved their goals.

Let’s go back to the basics to determine what true value is. Fundamentally, companies operate on a value exchange, as shown in Figure 1-1.

Figure 1-1. The value exchange

On one side, customers and users have problems, wants, and needs. On the other side are businesses that create products or services to resolve those problems and to fulfill those wants and needs. The customer realizes value only when these problems are resolved and these wants and needs are fulfilled. Then, and only then, do they provide value back to the business, as shown in Figure 1-2.

Figure 1-2. The value exchange realized

Value, from a business perspective, is pretty straightforward. It’s something that can fuel your business: money, data, knowledge capital, or promotion. Every feature you build and any initiative you take as a company should result in some outcome that is tied ...